Pressure on banks to raise fees as rate cap takes a toll

Customers in a banking hall. The CBK revealed last month that it had turned down request to increase service fees from 13 commercial banks. FILE PHOTO | NMG

Commercial banks are under pressure to introduce new chargeable services or raise fees on existing offerings in the wake of interest rate caps, analysts say.

Standard Investment Bank (SIB) says in a new report that lenders underpriced transactions before the introduction of interest rate controls when they relied more on the lending business, which is now less profitable.

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